More businesses and organizations, such as Amazon, Uber, MTA, an airline industry, professional sport organizations such as MLB
and NBA, among others, are employing the following pricing strategy, rather than relying on the fixed pricing strategies. a. Market-skimming
b. Value-based pricing strategy
c. Market penetration strategy
d. Dynamic pricing strategy
The companies mentioned above are increasingly turning towards Dynamic pricing in order to maximize sales and therefore increase profitability.
Dynamic pricing refers to a strategy where goods are priced at the optimal price based on the conditions at the time. In other words, it involves trying to sell at a price that is cheapest for the customer based on factors such as consumer willingness to pay, competition and others.
Prices can therefore change multiple times in as little a period as a day just to ensure that customers buy the goods being offered.
